• Sales and Use Tax

• The State of Texas imposes sales or use tax on most retail purchases and exchanges of service. In addition to the state tax, cities, counties and special purpose districts may impose additional taxes on purchase.
• State Tax: 6 1/4% (.0625)
• Cities and counties may impose up to 2% tax on retail goods and services up to a total of 8.25%
• City Tax: 1/4% (.0025) : 2% (.02), depending on local rate.
• County Tax: 1/2% (.005) : 1.5% (.015), depending on local rate.
• Transit Tax: 1/4 % (.0025) : 1% (.01), depending on local rate.
• Special Purpose Districts Taxes: 1/8% (.00125) : 2% (.02), depending on local rate
• Tabacco Tax Information
• • Tobacco products are taxed at different rates as below. In addition, distributors, wholesalers and retailers must pay a permit fee to sell cigarettes in Texas.
  • Cigarettes: $.41 (41 cents) per pack of 20; $.51 (51 cents) per pack of 25; $20.50 per 1000 cigarettes weighing less than 3 lbs; $22.60 per 1000 cigarettes weighing more than 3 lbs
  • Cigars: $.01 per ten or less than ten for cigars weighing 3 lbs or less per 1000
  • $7.50 per thousand on cigars that weigh more than three pounds per thousand, sell at factory list price, exclusive of any trade discount, special discount, or deal, for 3.3 cents or less each
  • $11 per thousand on cigars that weigh more than three pounds per thousand, sell at factory list price, exclusive of any trade discount, special discount, or deal, for more than 3.3 cents each and contain no substantial amount of non:tobacco ingredients
  • $15 per thousand on cigars that weigh more than three pounds per thousand, sell at factory list price, exclusive of any trade discount, special discount, or deal, for more than 3.3 cents each and contain a substantial amount of non:tobacco ingredients.
  • Misc Tobacco Products: 35.213% manufacturers list price
  • Tobacco Outdoor Advertising Fee: 10% of gross sales
• Gasoline Tax: $.20 (20 cents) per gallon on all gasoline removed from a terminal, imported, blended, sold to an unauthorized person, or other taxable use not otherwise exempted by statute. If state tax is not collected, seller must collect tax for destination state.
• Automotive: 6.25%
• Farm Machinery: 0%
• Vending: 0.5% of gross income from machine
• Coin Operated Amusement Machines: Registration certificate: $150; occupation tax permit: $60; general business license: $200 for 50 or fewer machines, $400 for 51:200 machines, $500 for 201 or more machines; import license: $500; repair license: $50
• Hotel: 6% of room price per occupied room
• Property Taxes: are decided by a system of tax units and voter referendums
• Manufactured Home Tax: 5% of 65% or .0325 of the purchase price
• Utility Tax Rates: 1/6 of 1% (.001667)
• Pharmaceutical Tax Rates: 0%
• Personal Income Taxes: 0%
• Retirement Income: 0%
• Inheritance Tax: 0%

Tax Freedom Day Arrived on April 19th in Texas